Trump Says U.S. Tariffs On Chinese Goods Could Exceed $500 Billion

Trump Says U.S. Tariffs On Chinese Goods Could Exceed $500 Billion

Trump Says U.S. Tariffs On Chinese Goods Could Exceed $500 Billion

"We can probably say that the trade war has officially started", Chen Feixiang, professor of applied economics at Shanghai Jiaotong University's Antai College of Economics and Management, told Reuters.

Shortly after the tariffs took effect, China said it is "forced to make a necessary counterattack" to a us tariff hike on billions of dollars of Chinese goods but gave no immediate details of possible retaliation.

The Chinese Ministry of Commerce called the tariffs "typical trade bullying" and said Trump "launched the largest trade war in economic history".

Beijing had said it would retaliate with punitive measures on USA products worth a similar amount, including soybeans, pork and cotton, but it had not officially confirmed that they had taken effect.

The trade war between the United States and other major economies escalated on Friday after Washington and Beijing launched punitive import tariffs on $34bn (£25.7bn) worth of each other's goods.

It added that instead of "serving the interests of U.S. companies and people, the move will prove to be counter-productive and damaging".

Companies worry the dispute could chill global economic growth, but Asian financial markets took Friday's developments in stride.

The U.S. goods trade deficit with China increased significantly in May, a Commerce Department report showed on Friday, as the United States and China lunged into a tit-for-tat trade war ignited by President Donald Trump. "We have been in trade deficits with almost every country across the globe for years, and the President wants to ensure that that doesn't continue".

"Generally speaking we're not going to get caught up in the tariffs the USA is applying to China because we have a different export profile", said Jacobi, who is executive director of the NZ International Business Forum. The Office of U.S. Trade Representative Robert Lighthizer released the list of categories of products affected.

"The first round's impact is not that big, but the key is whether there will be more - a second round of revenge and retaliation and a third round, " said Shi Yinhong, a professor of worldwide relations at Renmin University in Beijing.

US companies had US$256 billion in investment in China by the end of past year, exceeding China's US$140 billion in the United States, according to a report by the National Committee of US-China Relations and Rhodium Group in April.

These tariffs and China's retaliation comes amid push back from other nations, including China and Mexico, in response to the Trump administration's import tariffs on steel and aluminum. "It is not only because of China's large market size, but it is also because the Chinese market is stable, rational, and committed to the rule of law".

China's commerce ministry said it had lodged a new complaint with the World Trade Organization (WTO).

To be sure, signs of nervousness were evident in markets with the Japanese yen and the Swiss franc firm against the dollar while core USA and German bonds in demand.

A commodities trader in eastern Shandong province was told by customs at a major northern port that they have slowed the clearance of goods from the United States on Beijing's list.

Ahead of the planned tariffs, China said that the "US is opening fire on the entire world, including itself". "But it is applying the brakes to a global economy that has less durable momentum than appears to be the case", Rob Carnell, chief economist at ING, said in a note to clients.

Trump has charged the country with stealing USA intellectual property and for subsidizing steel to artificially low prices, giving it unfair trade advantage.

The Trump administration has argued that China has deployed predatory tactics in a push to overtake US technological dominance.

Kennedy say he thinks the Trump administration's enthusiasm for the conflict "will erode as the economic pain and political fallout from a trade war begin to take hold". Officials said 545 United States products, including agricultural products and vehicles, will be hit by retaliatory tariffs.

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